- For two consecutive weeks, the GBP/USD currency pair has been trading within an upward channel, culminating in a move towards the $1.3298 resistance level at the end of last week's trading.
- This was the highest level for the pair in six months, and it closed the week near its highs.
- This raises questions among currency traders about the upward targets for the GBP/USD pair in the coming days.
According to reliable trading platforms, the British Pound is experiencing a sharp rise, having gained 4.5 percent against the US Dollar over the past nine trading days. It faces strong resistance at $1.3430.
Will Sterling's Gains Increase in the Coming Days?
According to forex market trading. The British pound has achieved a remarkable rise this year, 2025, rising by about 10% since mid-January. Obviously, Sterling's gains are due to a combination of strong UK economic data and significant US dollar fatigue due to weak sentiment toward the US currency due to Trump's tariffs and their impact on the US economy and growth prospects.
Also, traders are increasingly betting that the Bank of England may cut interest rates on May 8 to allow the British economy more time to recover. Generally, British inflation is easing, and recession fears are fading. This gives the pound more room to achieve stronger gains unless it is subject to profit-taking and currency traders take new long positions.
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Trading Tips:
Closely monitor the factors positively influencing global financial markets and investor sentiment to anticipate the British Pound's future gains. Remember that it is a risk currency.
Economic Data Affecting GBP/USD:
According to the upcoming economic calendar data, the US Dollar's performance will be strongly influenced by the Q1 earnings season figures, starting with Tesla's highly anticipated report on Tuesday. This will be followed by other key earnings updates from tech giant Alphabet, along with Procter & Gamble, PepsiCo, Intel, Boeing, Merck, Philip Morris International, IBM, AT&T, Verizon, T-Mobile, Comcast, Intuitive Surgical, ServiceNow, Thermo Fisher Scientific, AbbVie, Gilead Sciences, CME Group, Newmont, and Visa. In addition to earnings, investors will be watching speeches from Federal Reserve officials Philip Jefferson, Adriana Kugler, Christopher Waller, Patrick Harker, and Austan Goolsbee. Markets will also monitor potential developments in US tariff policy, including the possible response to Asian protectionism and President Trump's signals regarding trade deals.
On the economic data front, the US economic calendar will be relatively light. US durable goods orders for March are expected to grow sharply for the third consecutive month, while existing home sales are expected to contract.
GBP trading will be influenced by the release of preliminary Purchasing Managers' Index (PMI) data for April, which provides an early reading of how business activity and sentiment are responding to recent trade developments. Manufacturing activity is expected to remain contracting in the UK. A slowdown is expected in the services sector. Along with the PMIs, UK retail sales data will be closely watched. After two months of gains, sales are expected to have declined in March.
Technical Analysis for the GBP/USD pair today:
The overall trend for the GBP/USD pair remains strongly bullish, and breaking the current $1.3300 resistance will push the bulls towards the next significant resistance at $1.3430, the highest level for the pair since last September. The subsequent upward breakout will be the $1.3600 level. From now until further upward movement, technical indicators confirm their break into overbought territory, as indicated by the RSI, MACD, and Stochastic.
Conversely, over the same timeframe, the initial breakout of the general uptrend requires bears to move towards the 1.3130 support level first. Stabilizing below this level provides an opportunity for bears to move towards the psychological support level of 1.3000, which confirms the downward trend reversal. I still prefer to buy GBP/USD from every downward level, and the closest trading recommendation for GBP/USD is to buy from the 1.3180 support level, with a target of 1.3375 and a stop loss of 1.3100. A sell recommendation for GBP/USD may include the 1.3385 resistance level, with a target of 1.3220 and a stop loss of 1.3470.
The GBP/USD pair is not awaiting significant and influential economic data from either Britain or the United States. Therefore, influential sentiment will be the key factor to consider, as holidays reduce liquidity and traders' risk appetite.
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